ISLAMABAD, July 9: The Federal Board of Revenue (FBR) has issued new rules for the computation of sales tax on commercial importers, stevedores and manufacturers of snacks.
These rules have been notified through a notification SRO678 of 2007 released here on Monday.
According to the rules, the persons registered as stevedores, shall charge and pay tax on the basis of volume of cargo loaded on or discharged from the vessel, as per the notified rates.
The rate of sales tax will be Rs220 on loading and discharge of laden containers at Karachi Port and Port Qasim; Rs25 per ton on dry bulk or break-bulk cargo handled at Karachi Port and Port Qasim; Rs6.50 per ton on Liquid bulk cargo handled by commercial tank and bulk terminals at Karachi Port and Port Qasim.
Where the cargo is handled by stevedores without involving container terminal operators, tax shall be paid by the stevedores, while in case of containerised cargo passing through container terminals, the liability to pay tax shall be of the container terminal operators.
In case of bulk cargo, the liability to pay tax shall be of the concerned commercial tank terminal operators, or as the case may be, of the bulk terminal operator.The stevedores shall not be entitled to any input tax adjustment or refund on any account, whatsoever. A stevedore shall issue serially numbered sales tax invoice as required under section 23 of the Act.
Every person registered as stevedore shall file monthly sales tax return in the manner as prescribed in Chapter II of the Sales Tax Rules, 2006 and the cases or disputes relating to the stevedores operating under these rules shall be dealt with in the Large Taxpayers Unit, Karachi.
Under the special procedure for payment of sales tax by commercial importers, a commercial importer shall pay sales tax only at import stage in the manner as prescribed under a notification.
In case of supply of locally purchased goods, other than the goods in respect of which value addition is already fixed through a separate notification issued under the Act, if made by a commercial importer, sales tax shall be paid at the rate specified under sub-section (1) of section 3 of the Act and subject to other provisions of the Act.
A commercial importer shall issue a serially numbered tax invoice for each supply. Provided that the tax charged through invoices shall not exceed the amount of sales tax paid by the commercial importer at import stage.
Upon payment of sales tax as prescribed under these rules at import stage, the commercial importer shall be exempt from payment of sales tax on further supply of imported goods in respect of which he has paid sales tax at import stage and there upon shall be exempt from the requirements of audit.
Exemption from payment of tax and audit under this rule shall not be available if the Collector of Sales Tax is satisfied that a commercial importer has issued invoices showing amount of sales tax in excess of that actually paid at import stage.
A commercial importer shall file sales tax return on quarterly basis in the manner prescribed in Chapter II of the Sales Tax Rules, 2006.
Under special procedure for payment of sales tax by manufacturers of biscuits, confectionery and snacks, who are required to pay sales tax on printed retail price.
All the registered manufacturers of biscuits, confectionery and snacks shall, in addition to the sales tax payable at the rate of 15 per cent of the value at which the goods are cleared or supplied from the factory (ex-factory price), pay sales tax on a value addition of 12 per cent in lieu of sales tax payable on the basis of printed retail price.
While determining his tax liability, a manufacturer shall be entitled to claim input tax credit for the tax paid on account of taxable purchases or imports made by him and utilities like gas or electricity consumed for furtherance of taxable activity, against his output tax liability.
The retail price inclusive of sales tax shall be legibly, prominently and indelibly printed or embossed by a manufacturer on each article, packet, container, package, cover or label, as the case may be.
The distributors and wholesalers shall be exempted from payment of sales tax on biscuits, confectionery and chips on which the manufacturer has charged sales tax in the manner prescribed in this chapter.
